Mutual Benefits Assurance, Law Union & Rock Out With Public Offers
September 9th, 2006 mishacko || mishacko@yahoo.co.uk
By Mishack Okpara
AS the 28th February 2007 deadline closes in, many insurance companies are rushing to the stock exchange to raise money to meet the National Insurance Commission’s minimum capital requirement for insurance companies. The latest companies to come to the primary market are Mutual Benefits Assurance and Law Union & Rock, two companies listed in the insurance sub- sector of the Nigerian Stock Exchange.
Mutual Benefits Assurance Plc plans to raise N2.4 billion by offering for subscription, four billion ordinary shares of 50 kobo each at 60 kobo per share. The application list opens on 6th September 2006 and closes on 29th September 2006. According to the prospectus, “the purpose is to enable the company meet NAICOM’s minimum capital requirement for insurance companies and for possible consolidation with other insurance companies. The proceeds would be applied towards developing a new business line-equipment leasing, stock market investment, branch expansion and refinancing the company’s working capital.”
In the same vein, Law Union & Rock Insurance Plc is sourcing for 1.98 billion by offering for subscription 1.8 billion ordinary shares of 50 kobo each at N1.10 per share. The application list opens on September 5, 2006 and closes on September 29, 2006. According to the prospectus of the offer, “The proceeds from the recapitalisation will enable the company increase its shareholders’ fund to ensure compliance with the minimum capital required of Nigerian insurance companies as directed by the required authority.”
(No Ratings Yet)
Loading ...